Apa Group · ASX:APA
Apa — Australian Pipeline Trust — Shareholder Meeting (October 2002)
24 slides from Apa's shareholder meeting presentation, Oct 24, 2002
Slide 1: Unitholder Information Meeting
Australian Pipeline Trust Unitholder Information Meeting George Bennett Chairman Sydney, 24 October 2002
Slide 2: Results in Summary
Results in Summary Strong Earnings Growth $M 38 37.1 36 ! Total revenue +2.4% 34 ! Pipeline transportation 32 30.7 revenue +3.7% 30 28 ! Net profit after tax +20.8% 26 24 22 20 2002 2001 NPAT (after minorities) 2
Slide 3: Results in Summary (Cont’d)
Results in Summary (Cont’d) Continued Strong Earnings Growth $M 300 255.4 249.3 13.9 Other 250 13.9 Revenue 61.1 Other 200 61.5 Pipeline Revenue 150 180.4 Pipeline 173.9 Revenue 100 2002 2001 Revenue 3
Slide 4: Financial Summary (cont’d)
Financial Summary (cont’d) Revenue by Pipeline $M 110 104.4 105.8* MSP - Moomba to Sydney 100 RBP - Roma to Brisbane 90 CGP - Carpentaria Gas 80 77.9 76.9 70 AGT - Amadeus Gas Trust 60 GGT - Goldfields Gas Transmission 50 MWP - Mid Western Pipeline 40 30 24.1 24.4 19.8 16.2 20 10.9 8.5 10 4.3 3.6 0
Slide 5: Financial Summary
Financial Summary Delivering What We Promised Actual Year ended 30 June 2002 2001 % Change $M $M EBITDA 132.2 127.5 3.7 Pre Tax Profit 59.1 53.3 11.0 Profit after tax & minoritie 37.1 30.7 20.8 Earnings per unit (cents) 15.2 12.6 20.6 5
Slide 6: Financial Summary (cont’d)
Financial Summary (cont’d) 2002 Performance strengthened by:- • Growth in pipeline revenue • Continued management of costs • Reduction in tax rate • Fall in interest expense 6
Slide 7: Cash Flow Statement
Cash Flow Statement • Underlying cash generated from operating activities increased 9.8% from $78.7 million to $86.4 million. • Net operating cash flow reduced by $16.5 million due to minor increases in working capital and one-off cross period timing matters: – Commencement of Gas Transmission Deed
Slide 8: Distribution Increased
Distribution Increased C e n ts p e r u n it T o ta l P a id F in a l A c tu al to 3 0 .0 6 .0 2 Q 4 02 F Y 02 F Y 01 T o talD istrib utio n 1 5 .0 6 .5 2 1 .5 2 1 .0 Inco m e D istrib utio n 9 .0 6 .5 1 5 .5 1 2 .5 - F ranked C om ponent - 1.9 - U nfranked C om ponent 9.0 6.5 15.5 10.6 C ap ital D
Slide 9: Operating Highlights
Operating Highlights Queensland • Roma to Brisbane Pipeline Completion of Looping Stage Five to Ipswich completed. Looping Stage Six commenced. Coal Seam Methane contracts signed and gas delivered for power generation. • Carpentaria Gas Pipeline Construction of a compressor station at Morney Tank, 2
Slide 10: Operating Highlights (cont’d)
Operating Highlights (cont’d) Northern Territory • Amadeus Gas Trust Pipeline Constructed two spur lines supplying gas to new railway sleeper factories in Tennant Creek and Katherine for the Darwin to Adelaide railway line. 10
Slide 11: Operating Highlights (cont’d)
Operating Highlights (cont’d) Western Australia • Mid West Pipeline (WA) Additional customer (Hill 60 gold mine) has commenced taking gas for its generator. • Goldfields Gas Transmission Planning additional compression as load demand Increases. 11
Slide 12: Key Industry Issues
Key Industry Issues • Need for a clearly articulated energy policy. • Need for additional gas supplies for southern and eastern Australia. • Need for revision of existing regulatory framework. 12
Slide 13: Australian Pipeline Trust Australia’s Leading Transporter of Natural Gas
Australian Pipeline Trust Australia’s Leading Transporter of Natural Gas 13
Slide 14: Unitholder Information Meeting
Australian Pipeline Trust Unitholder Information Meeting Jim McDonald Managing Director Sydney, 24 October 2002
Slide 15: Regulatory Environment
Regulatory Environment • Industry Discontented with Gas Access Code – Regulation is strongly resisted – North American investment withdraws – Supreme Court of W.A supports Epic – Greenfields draft guidelines rejected – Access Code review is imminent – Productivity Commission report is positive 15
Slide 16: Regulatory Environment (cont’d)
Regulatory Environment (cont’d) • Moomba to Sydney Code Coverage Case – NCC has recommended coverage – Minister to consider the recommendation – It is unacceptable for our pipeline to remain covered whilst a competing pipeline is not. – Appeal provisions exist 16
Slide 17: Regulatory Environment (cont’d)
Regulatory Environment (cont’d) • Goldfields Gas Transmission – Access Arrangement before W.A Supreme Court – GGT must protect its rights. 17
Slide 18: Regulatory Environment (cont’d)
Regulatory Environment (cont’d) • Optimistic Outlook – Review of the Access Code for Natural Gas – Better climate for investment in the Industry. • EPIC Decision – Significant victory for transmission pipeline owners. • Foundation Contracts should be the basis for Third Party Access. 18
Slide 19: Gas in the National Fuel Mix
Gas in the National Fuel Mix • Gas the environmentally friendly & cleanest fossil fuel. • Fully integrated pipeline grid in southeast Australia with more flexible gas contract management will produce more responsive gas marketplace. • To maintain adequate gas supplies to Moomba – Timor Sea gas to Da
Slide 20: Growth Strategy
Growth Strategy • Incremental Growth – Continuing to expand capacity and increase volumes in our existing pipelines. • Prudent Acquisitions • “Greenfields” – Gas to south east Australia – Timor Sea/ PNG/ Northwest Shelf • Expand the reach of Natural Gas. • Complementary business opportunities. 20
Slide 21: Summary
Summary • Our business is performing well. • Gas to Moomba remains a central issue. • We are defending our business well against a imperfect regulatory regime. • We continue to explore opportunities to grow our core business. • We are investigating investment opportunities in related businesses. • W
Slide 22: We Deliver.
We Deliver. Australian Pipeline Trust YL
Slide 23: QUESTIONS ?
QUESTIONS ? 23
Slide 24: Thank you for your attendance.
Thank you for your attendance. www.pipelinetrust.com.au
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